This video made me realize just how outrageous those investment TikToks and internet gurus really are when they talk about investment being easy. It really is a highly-technical job with years of experience required and not something you can do by finding silly "patterns" on a graph in your bedroom. Thank you Bagel, for opening my eyes.
Which is why I'm perfectly content to just throw my money in an ETF and let it ride. I ain't got the time nor the skill to run with the professionals, so why would I think I can beat them at their own game?
@@ArawnOfAnnwn I've had decent success with my 3 fund (Boglehead) portfolio. The three ETF's I currently own are: VTI, BND and VXUS. There are of course different ETF's you can use (like VOO instead of VTI for example).
You demonstrate just how much work goes into your job beneath the veil, the fact you can do this and run a youtube channel is a testament to your work ethic - thank you Richard
@@alexweitz To go in-depth, yes. But that kind of depth would also involve revealing proprietary information from his employer that he would not want to reveal. But a basic overview could be done in a normal-length video or short series. And I wouldn't want one of the very top stocks that gets all the headlines anyway. Something random from the bottom 100 of the S&P 500 or somewhere around there would be ideal.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?
I think the safest strategy is to diversify investments. Like spreading investments across different asset classes, like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
This is why I love this channel. An actual professional showing how actual research is done. So many people these days say they “researched” something when they really just mean they read what other people said about it on Twitter 😂
Exciting times for semiconductor stocks TSMC, AMD and NVDA. which are all experiencing a surge in value. It's interesting to watch the competition develop, given these stocks are major contributors to Al chip growth. On the increase of my personal holdings, I've witnessed amazing impact on my shares.
Intel and AMD will definitely have their share of the market. TSMC is at max capacity and investing in other semiconductor companies will be an absolute power move, Different chips are good at different things and Nvidia has been very specialised, which leaves other aspects of Al open.
certainly, i had bought NVDA shares at $300, $475 cheap b4 the 10 for 1 split and with huge interest I keep adding, i’m currently doings the same for PLTR, POET and AMD constructively. Best possible way to get ahead, is participating behind top experienced performers.
I agree, i own three business, right now I'm compiling and picking stocks that l'd love to hold on to for a few years before retirement, do you think these stocks would do better over the years? My goal is to have at least $2 million saved for retirement.
This is a really good concise guide on how to do fundamental analysis. When people say “do your own research”, they never say how to do it. Kudos to you for changing that!
yeah but some of his (great) advice is like "analyze the cash flow" That by itself is like half a college accounting class. So he basically laid out like 1/2 of an MBA courseload and you can go figure it out for yourself =D No snark intended, I love Plain Bagel, but his advice isn't exactly trivial to absorb
@@IntegralKing yeah I'm studying my PhD in math finance. What impressed me is he was able to talk about it in a way where people who don't know that stuff still learned enough to begin researching it
@@ajp642 I was literally going to suggest Prof. Damodaran, too. Though fair warning, the classes are long, detailed, and sometimes they get boring. But that's the nature of the beast when you really want to learn something, isn't it? It isn't always exciting.
really great info. I think it's also worth pointing out specifically that the important thing is understanding how to evaluate a stock and not just blindly following a method you find online. Too many people just try to copy what they think successful people do without having any idea of what any of it means and seeing it just as abstract numbers. I know you talk about this a lot in other videos.
Yeah. I've found for me looking at valuation first is best since I can then remove a lot of unnecessary contenders for more interesting ones. Like if something is down 99% all time or it's at a 200 PE growing 30%/y then I'll look into it for a very short time and often conclude it's not worth it. Then I don't waste time.
@@fanban2926 Right. I agree you. Adding a few valuation criteria to your screener is what I've always done as well. But I think his point to saving that to the end of the process was so that he didn't pollute his decision of whether its a good long term company with any short term performance misstep the company may be finding itself in right now. If it turns out to be a good company long term based on his first four steps, but with short term troubles, then put it on the watchlist and monitor for the eventual turn around.
What I appreciate about the bagel: -He didn’t fall into the honeypots of sponsorships alike FTX or the Scottish lords thing. When the bagel stays plain without sugarcoat, that is credibility.
@@user-wp5tm2ne3s Established Titles drama. Iirc you pay them to buy part of land in scotland, then you can call yourself a lord as per scottish culture.
... NVDA has some of the WORST metrics in the semiconductor space. It's so overpriced and growth-oriented I don't know how you got to that conclusion based on this video. I'm not saying it's bad; I'm saying the principles laid out in this video doesn't support your conclusion
Totally agree. Bloom Berg excel plug in has saved me so much time. All I have to do is input the ticker and all of the data I am interested in is organized instantly. (Instead of spending 10 minutes inputting different commands into bloomberg)
Wow, I really needed this content, I am currently studying Financial Management and I want to work in the field of investment management soon. I have searched and watched a lot of videos to know what the work process is like in this field and all they told are just some broad terms which is hard to understand clearly. I am lucky that I subscribed to this channel and I am now confident in my career knowing what it will be like in the workplace.
This is the first RU-vidr who has a background beat in his intro, has clear glasses and a head full of hair but nonetheless spits real financial knowledge not talk about chilling on a beach, straight up knowledge.
I am regretting not investing in Nvidia stocks ever since my wife did. But still grateful i kept money in the money market. With about $200k maturing soon, i plan investing well in it. But then what other stocks should I look into as a newbie to safely grow my money?
Thats when you hire someone to manage your money. You need a (CFP) straight up! personally, I would invest in ETF's and also love investing in individual stocks.
I took charge of my portfolio but faced losses in 2022. Realizing the need for a change, I sought advice from a fiduciary advisor. Through restructuring and diversification with dividend stocks, ETFs, Mutual funds, and REITs, my $1.2M portfolio surged, yielding an annualized gain of 28%.
'Natalie Ann Brinkman'. One of the finest portfolio managers in the field also widely recognized. Just research the name. You’d find necessary details to work with and set up an appointment.
Really impressive summary - went in my permanent save watch-list for all the useful information. IMHO though, I think this level of analysis can present the risk of analysis paralysis for the somebody interested in picking stocks. It's often been said by the like of Buffet and Lynch that temperament plays a hugely important role - can do all the analysis in the world but if somebody doesn't have the nerve they'll end up selling the moment there's a slight downturn. In my own experience I've found learning and expanding my understanding makes it much easier to not worry. Perfect example was last year and the tech sell-off. I understood why a profitless Uber would be losing market share but Microsoft made no sense at all. Sure interest rates were climbing and again companies operating off debt will be in trouble but Microsoft sits on more loot than Smaug and has a credit rating better than the US Government. So I wasn't worried in the slightest over the tech stock price slide, I knew much of my portfolio would be coming back.
Yahoo: no one might use their search engine, and they might be made fun of for the quality of their news, but I love their financial page and news. I find their layout easiest to look at (for my amateur investor talents).
Yes!!! You really are one of the RU-vidrs whose opinion I respect the most on investing and I'm really interested to know how you think on the matter and what is your strategy!
Thank you so much Richard, I totally agree that investing every penny to my name into the Motley Fools “All In” stock is the key to being a successful investor 🙏🏼
investment requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myselfMay I ask which investments are good? I've been looking at a few different ones but want others' opinions as well.
Thank you so much for giving this complete overview on fundamental analysis. Even though the video is 20 minutes you have put together a lot of information in there. I have also watched some of your other videos and found those very informative and useful. Can you please do a video on your process when it comes to selling stocks in your portfolio? Like, how you decide when to sell part or entire holdings.
This is great. Thank you for posting. It seems very daunting though. Using public sources seems like it would take a week to analyze one company. At that rate it would take just under 10 years to analyze every company in the S&P 500.
Which is why he does mention that you are better off letting the professionals do the work they have a dedicated staff that gathers information. This is probably why you need to be interested in the company or field the company is in because you probably find that you have some general understanding and maybe spot problems faster
Thank you so much for sharing the resources, such as EDGAR! It would be amazing if you could do a video doing an overview of open source informational resources that are available and reliable
Golden nuggets in this video! Except that I absolutely fixed a sink after watching a plumber explain how to do so on RU-vid. Unfortunately the reality of trading or investing is much complicated!
👍Great explainer of how a value investor does fundamental analysis. I'd like to know how a growth investor selects stocks and how Keynes selected stocks and ran a portfolio in only 30 minutes a day.
I know next to nothing about stocks or how to analyze them. But man I swear I could teach a class after this. Not one word you said was wasted. And there is something about your voice that’s easy to listen to. As a auditory learner this is profoundly helpful
This sort of takes me back to my first week in Corporate Finance Course. Someone asked how can we tell which stocks and shares to invest in? And almost with missing a beat the prof replied, you are in the wrong class then you need to take Administrative Policy which was more the business strategy class that would discuss business fundamentals. It's like "The Big Short" when the advisor is talking to the stripper about mortgages and immediately cuts to him on the phone "He's right there is a bubble."
I have learned DCF, dividend models, grenblattt books read, multiples. Of all possible, technical analysis made me the most money, without looking at fundemantals at all
All your strategies are great. I'm just going to test it out and keep monitoring it. I am grateful to have you around to teach us how to do good work to make a profit and learn new market strategies. Thank you very much again.🌐
Thank you so much. I will now rest easier buying indexes. Up until this point I just felt lazy. But with all the work I am doing there is simply no space for all this(which I wanted to do if I were to go into buying solo stocks). So many people say "fundamentals", but no one has gone this much into it, making 10 minute surface level videos for 20second segments of this one and never getting anywhere.
Thank you for demonstrating why most people are better served by using a professional or just passive index. Can you make video about robo advisers? A part of my portfolio is managed by Fidelity's robo advisor. I would like to hear what you have to say about robo vs target date funds. Thank you.
I've been watching this channel for a while every now and then when RU-vid recommends it, but this video actually made me subscribe, nice job! I have two questions I think could make a couple new videos: 1 - After the research, once the valuation becomes attractive, how do you think about position sizing? You mentioned dollar cost averaging within an acceptable valuation range, but how big are you willing to make the new position in a portfolio and how big are you allowing it to grow? And how do you decide the appropriate size for different stocks? 2 - What makes you think about selling? Maybe position sizing (previous question) has a role, but what about extreme overvaluation, fundamental changes in the company and the need to raise cash for an even more attractive opprtunity? Or do you see other situations where selling is necessary? Thanks!
I appreciate the subscription! Sizing is usually pretty easy; we’ll either take a full position (a set amount based on the portfolio size that leaves room for further buying up to a limit), or half a position if we think the stock may come down further but want to hedge our exposure. As for selling, that’s a tough one - we usually give a stock at least three years and then evaluate how it’s performing. I’ve trimmed when valuation became stretched but don’t often sell on valuation alone. The biggest thing I consider is whether management followed through on promises, or risks of permanent impairment (eg fundamental changes in the business/industry)
How do you know that your process works well? In other words, do you measure your "performance" at stock research, and find ways to improve the process?
Great question! The company does track my performance over time (ie what the stock returns after I recommend it) but it’s unfortunately not a cut and dry approach - sometimes companies do well/poorly for reasons completely outside the scope of your research (e.g. a pandemic kills their revenue). But we do revisit positions, discuss what happened, and try to improve based off that
wait wait wait wait .... wait You're telling, when WSB said to "do your own research", I have to do MORE THAN LOOK AT THE COMMENT SECTION ON ROBINHOOD AND WEBULL ???? Love your channel for bringing fundamental, practical, down to earth understanding to investing. I would say "the world needs more people like you" but then that doesn't help you're channel, so I'll just say "the world needs more of you" :)
Amazing Amazing presentation !Thank you! Please Keep it coming where you can make it easier and easier for many new investors to understand the importance of researching a stock before getting into it.
For some criticism you asked: 8:39 I wouldn't say "adjusted" means "not adhering to accounting rules". Iirc, IAS 1 literally prescribes management to report these adjustments if the prescribed methods would materially misrepresent the company's position. So I agree it that it could be used to make company look good, but it can equally make a successful company not look bad. This is doubly important for the US, as GAAP IFRS double reporting can present two entirely different sets of ratios.
Top tip for plebs, research and invest in the companies that you already keep track of for non-financial motives. If you’re already keeping track of thr company before you invest in them, you’re going to have much more knowledge about a company than most analysts.
Curious about the execution side of things. How do you size up a position, do you DCA into it or buy-in over time using technicals/quant indicators, or do you lump-sum all of the allocation. And is that done in-house or via S&T/block trades. When would you go for derivatives, debt instruments, or warrants over just the equity/shares, etc. You could definitely add many parts to this and do a video series.
Wow, love the video and the tag. I myself love morning brew and listen to the pod everyday. Great sponsor. Think I’ll stick around for more content. Suggested by “the young investor podcast” Question: How far back do u go in each segment of your analysis?
Great video, it would be interesting a video comparing pros and cons of fundamental analysis and quantitative investing especially for bigger account that can afford to diversify in hundreds of equity (in this case I see several advantages of the quant investing in particular for the less experienced investors)
The grifters and pumpers will now swoop in and copy your video. Andrei Jikh is going to have a veryyy similar video by tomorrow just watch 😂 As always, the best info plain bagel! You rock.
I really really really liked this vid. I am a agnostic passive investor which means i do not chase anything or anyone but i do enjoy your videos and try to tell my peers who think they have a smart idea what really means to invest. Thank you for this one. (simple german electrician investor with about 150k Portfolio)
@ThePlainBagel It would be cool if you could make a follow up video where you go through these steps with a sample company, like Apple or something everyone knows
I think it would actually be more fun for a decent sized company that isn’t sexy and well-known, so viewers could get a handle on analyzing an industry they know nothing about.
Incredible man. Really makes you think about all of these day-traders and 'buy my course' types of guys. Do they even analyze wtf they're buying? Thanks for the vid 🐻
Thank you brother. I do like how you cover current events and your original content but some practical know how from you is valuable. I know I still have to do the legwork but this helps. Wishing you continued success.
Hey Richard, I wanted to ask if you would consider doing a video for individual investors on topics like setting profit goals, taking of profits and how to reallocate the profits.
Could you do a video about becoming an analyst? What education is required, how likely is it to find a career, salary scale, perks to the career, what it’s like when your just beginning the career and more. Thanks
Recently bought some recommended stocks and now they are just penny stocks. There seems to be more negative portfolios in the last 3rd half of 2023 with markets tumbling, soaring inflation, and banks going out of business. My concern is how can the rapid interest-rate hike be of favor to a value investor, or is it better avoiding stocks for a while?
Very helpful video. Learning how to invest is key to build wealth. I enjoyed reading A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger.
